One of the requirements for entering the financial markets, especially the world of digital currencies, is the training of digital currency analysis. In this article, we try to teach the technical analysis of digital currencies in simple language. The concept of technical analysis is based on the supply and demand of a currency pair, a commodity or a company’s stock. Digital currency users also need digital currency technical training to start their business and make profitable transactions. In this article, we will explain digital currency analysis to you from the beginning to the end.

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What is digital currency analysis?

As mentioned earlier, the price trend of financial markets is based on supply and demand. Prices decrease or increase with the buying and selling of investors or traders. But sometimes because of the inappropriate atmosphere in the world, including the news of Russia’s war with Ukraine, the spread of the Corona virus, the hacking of the UniSwap exchange, or positive news such as; The cooperation agreement between two companies for more sales, the launch of Ethereum 2 to reduce transaction costs, or the demand of people to buy electric cars, means that only technical analysis will not answer our analysis of the market. In this case, the use of fundamental analysis (news) will complement market trend forecasting. For more information about investing in digital currencies, read the article on how to invest in digital currency.

In technical analysis, there is a term that says; History will repeat itself. The meaning of this statement is that the candlesticks formed on the chart are repeated in the form of recurring waves in different time frames. That is, the price changes direction from an upward to a downward or neutral state or vice versa. By learning the technical analysis of digital currency, you can predict the patterns that are forming in the chart, using the trend line and indicators, you can predict the market trend in the short, medium or long term of a currency pair and a Create your own trading strategy.

Read more: Step-by-step training on digital currency technical analysis

The basics of digital currency analysis training

Before we get to the knowledge of charts and candlesticks, we will discuss 3 concepts, digital currency analysis training and digital currency fundamentals training.

The basics of digital currency analysis training

• The concept of trends

Patterns

• Candlestick

Oscillators and indicators

• RSI indicator

Trends

One of the basic principles of technical analysis is to learn the price trend and market movement, which can be used to correctly identify the trend using resistance and support levels and indicators. In the following, we will discuss 3 categories of trends.

Market uptrend

One type of trend is based on rising waves that make a new price ceiling. This market is also called a bullish bull market, which indicates more demand than less supply and the power of buyers over sellers.

Downtrend of the market

The so-called bear market is said to consist of a series of downward waves and indicates the dominance of sellers over buyers and more supply than less demand for that currency pair.

Market neutral trend

In this type of market, there is a relative balance between buyers and sellers and the price moves up and down periodically in a channel. In other words, the price does not have the ability to break its previous ceiling and floor.

Candlestick

Japanese candlestick charts are one of the most used part of technical analysis. These candles are formed alternately and consecutively in the chart and determine the direction of the market. More than candlesticks, it is used to detect trend changes in the chart. In the image below, you can see that each candle can be created in two ways: red in the downward trend and green in the upward trend, and each one consists of four parts. Open your trades stress-free with digital currency candlestick training.

RSI Oscillator

RSI or relative strength index is actually an oscillator that fluctuates between 0 and 100. If you use the Trading View analytical website, you can take advantage of this indicator. You can get all the complete information about digital currency technical analysis by purchasing the digital currency package.

The relative strength of the indicator will change as you change your trading time frame. If you put your time form on the above time, i.e. four hours or one day. You can easily recognize the trend of the market reversal on the RSI chart. The lower the RSI value means the oversold area, the higher the RSI value means the overbought area.

Read more: Digital currency training

Support and resistance lines

The area or lines of support and resistance (Support and Resistance) is a powerful technical analysis tool that can be used to take short and long positions in different time frames and plays an essential role in traders’ analysis. These lines are formed alternately, mostly in their previous and next peak and roof areas. This usually happens in rand prices. From the lines of support and resistance in addition to knowing the candle stake information, it is easy to predict the direction of the market to a large extent.

Bitcoin to TetherBTCUSDT Chart

Digital currency fundamental training

Fundamental analysis is a detailed examination of the information about the currency pair you intend to trade. This review includes reading the content and features of a digital currency, including its design team and founders, the goals of the digital currency presented, the amount of deposit that investors invested in that plan, and following the news of the world of digital currencies. Trading digital currencies has a lot of volatility that requires a lot of skill. Not only by learning digital currency analysis, but also by having enough information about the news of the economic world or digital currency fundamental training, you can have sufficient mastery in doing your daily trades.

When you only work with technical analysis, you close your eyes on the news that is circulating around that digital currency and we don’t know which digital currency has an agreement with which company or which digital currency is currently in the market. It is launching its own blockchain.

So, it is better to change your trading pattern and, in addition to using all kinds of indicators and analytical tools, be aware in social networks and the virtual world. In the continuation of the digital currency analysis tutorial article, we will discuss three cases of digital currency fundamental analysis websites.

Digital currency fundamentals training websites

• Intotheblock (intotheblock.com)
• Glassnode (Glassnode.com)
• Coinmetrics (Coinmetrics.io)

Conclusion

Daily analysis is one of the measures that prepare a trader to enter the beautiful world of digital currencies. In this article with the title of digital currency technical analysis training, you learned that in addition to digital currency technical training and digital currency candlesticks, fundamental analysis should not be neglected. Also, even if you have completed the course of technical analysis, you should not be proud of yourself and engage in gambling-like transactions, because technical analysis will not be 100% the answer for you.